Currently, remittances to non-residents are allowed by banks if the person making the remittance furnishes an undertaking, accompanied by a certificate from a Chartered Accountant (“CA”) certifying the rate for withholding tax as per section 195 of the Act. The banks then forward the certificates to the Reserve Bank of India (“RBI”), which in-turn forwards it to the Income tax department.

Finance Act, 2008 inserted a new sub section (6) to section 195 effective from April 1, 2008, which requires the person responsible for making payment to a non-resident to furnish information relating to such payments in forms to be prescribed. The Central Board of Direct Taxes (“CBDT”) has now, by notification No 30/2009 dated March 25, 2009, prescribed a new rule 37BB in the Income Tax Rules, 1962 (“the rules”) prescribing Form 15CA and Form 15CB to be filed in relation to remittances to non-residents under section 195(6) of the Income Tax Act, 1961 (“the Act”). This new rule is effective from July 1, 2009 and shall apply to all remittances being made after July 1, 2009. The process that will have to be followed, before any remittance can be made, is as under—

Step 1 : Obtain a certificate from a Chartered Accountant in Form No 15CB

Step 2:Furnish the information in Form No15CA

Step 3:Electronically upload Form 15CA on the designated website

Step 4:Take Print out of Form 15CA and file a signed copy

Step 5:Remit money to the Non Resident

Please note that all the above steps have to be undertaken before remittance of money to the non-resident.

Notification no. 30/2009 is as below:-

In exercise of the powers conferred by section 295 read with sub-section (6) of section 195 of the Income-tax Act, 1961, the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Seventh Amendment) Rules, 2009.

(2) They shall come into force with effect from 1st July, 2009.

2. In the Income-tax Rules, 1962, after rule 37BA, the following rule shall be inserted, namely:-

“Furnishing of information under sub-section (6) of section 195.

37BB. (1) The information under sub-section (6) of section 195 shall be furnished by the person responsible for making the payment to a non-resident, not being a company, or to a foreign company, after obtaining a certificate from an accountant as defined in the Explanation to section 288 of the Income-tax Act, 1961.

(2) The information to be furnished under sub-section (6) of section 195 shall be in Form No. 15CA and shall be verified in the manner indicated therein and the certificate from an accountant referred to in sub-rule (1) shall be obtained in Form No. 15CB.

(3) The information in Form No. 15CA shall be furnished electronically to the website designated by the Income-tax Department and thereafter signed printout of the said form shall be submitted prior to remitting the payment.

(4) The Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture, transmission of data and shall also be responsible for the day-to-day administration in relation to furnishing the information in the manner specified.

I have following queries on the subject.I would be obliged if you throw light on the same- Whether 15CA is required to be uploaded to IT site? Is it before Crediting the amount to the NR in the books of accounts or after Crediting the same in the books of accounts but before actual payment of the same to him or after actual payment of the same to NR and before its repatriation to foreign destination by the NR from his own NRO A/c or NRE A/c in a situation when payment is made to NR in INR and the same got deposited by him in NRO or NRE A/c? The words used in R 37BB (2) are “………….prior to remitting the payment.” What the CA should write in the Form 15CB in the boxes B 1,10 and 12 which ask for information in foreign currency in a case where payment is made to NR in INR and the same is credited by the NR in his NRO/NRE a/c? Your response is eagerly awaited.

We are importing materials from outside India from Company and no individuals are involved. We pay advance of 20% against sales contract and balance 80% based on copy of Bill of Lading and other commercial documents. Both the payments are direct by swift. We received a circular from our bank to submit form 15AC and Form 15CB or A certificate from the AO u/s 197 of IT Rules or An order from AO u/ss (2) or ss (3) of s 195 of I T Rules for every payments. Are these mandatory for importing materials? Kindly advise.

my client has to refund a booking amount of a tour booked by a non resident foreign national as per agreed terms. Is any tds liability arise as per section 195. 15CA & 15CB required? please reply.thanks

Sir, Tax Authorities from Oct 2013 introduced mandatory submission of form 15CA and 15CB for forex remittances made for import of goods/services. When there is no interest portion is involved and banks make payment of invoice raised by foreign supplier, we do not see any reason for importers to submit the above two forms to banks. Do you think that improters are subjected to submission of these two forms /

Tax Authorities from Oct 2013 introduced mandatory submission of form 15CA and 15CB for forex remittances made for import of goods/services.

When there is no interest portion is involved and banks make payment of invoice raised by foreign supplier, we do not see any reason for importers to submit the above two forms to banks. Do you think that improters are subjected to submission of these two forms /

I have uploaded the 15ca form and got an ackowledgement for the same but later realized that at one point i have made amistake and wrongly considered taxability of income tax section, how do i edit it as i cannot fill a new form again

1. How can my supplier claim for the TDS deducted in India if s/he lives in foreign country?

2. In my business, we are required to make part payments at times. In such cases, would I need to follow the TDS procedure along with 15CA/15CB for each part payment? If so, then that would be unfair, wouldn’t it as you end up deducting more than once and therefore, more than needed?

3. Most suppliers don’t quite care about TDS that we are to deduct here and want the full amount. But the government wants us to deduct TDS. So in effect, we end up paying taxes on their behalf and paying the supplier in full. Can we claim refund of this TDS that we’ve paid or is it taken for granted that its government money after that?

4. What is the TDS tax slab that needs to be deducted and who decides?

5. After what amount is this TDS and 15CA/15CB valid and required? Do I have to do this for paying someone $100 also?

Need answers asap as I need to make payments and these rules are actually resulting in eating away all my profits.

I am wondering what advice you gave on the following question to Mr. Varun Gupta on July 2010.

There is a big flaw on the online for as on 03 July 2012. Or maybe we have not been able to understand it properly. In part 2 of the bank, there is a field that states – “Name of the bank *”, which is a required field, and the user has to select from a droplist. The list has a couple of options. What if the user has to transfer to a bank that is not there in this list. There is no Others option. Let’s say the user wants to transfer to Intesa Sanpaolo. There is no option. There are hundreds of big banks which are not there in this dropdown. Does this mean that an Indian resident cannot transfer to a business or individual who has an account in the banks which are not listed in this droplist?

If a deposit is kept in nro account for one year and on maturity renewed for further two years and at the end of three years, the depositor want to transfer the funds abroad, what details are to be given in 15ca and 15cb.Interest only for the last deposit, or interest for the previous one also? and also, what r the dates to given in the form as date of tas deduction? please clarify. thanks

I have uploaded the 15ca form and got an ackowledgement for the same but later realized that at one point i have made amistake and wrongly added a zero to one of the figures how do i edit it as i cannot fill a new form again

what are the consequences if anyone has not files either of two forms 15CA &15CB.? AND as an auditor what are the rbi circular’s & fedai rules to be gone through in regard to remittances outside india and remittances in india.?

Can someone tell me the step by step procedure to transfer funds from indian NRO account to NRE account? I understand as per recent RBI decision this convention is possible. Anyone’s assistance will be highly appreciated. Harish

I have uploaded the 15ca form and got an ackowledgement for the same but later realized that at one point i have made amistake and wrongly added a BANK DETAIL how do i edit it as i cannot fill a new form again

If Form 15CA/15CB reqd for family remittances whether TDS applicable ? What’s rate ? What’s procedire for Refund as Income is below Taxable limit PAN is oK for TDS agst having NO TAN Pl clarify all confusing situations

Dear greeting’s, any payment made out of india requires Certificate from CA’s or there are list of payment to whom certificate is required ..? like if “Mr.X” pays out of india as Fees for his Child whether MR. X also requires Certificate from CA? please reply at your earliest , thanks, AMIt Bhatia

Sir, should I hv to file 15CA & 15 CB , for remitting money approx Pound 4000 to my son in U.K. The money which I will be remitting is his own money of PPF a/c in India, which is now maturing. The PPF a/c was opened by him when he was in India,i.e. before 1995, when he was medical college student. Thanks . pl guide. Ca K H Mahajan Mobile 9669910648

There is a big flaw on the online for as on 03 July 2012. Or maybe we have not been able to understand it properly. In part 2 of the bank, there is a field that states – “Name of the bank *”, which is a required field, and the user has to select from a droplist. The list has a couple of options. What if the user has to transfer to a bank that is not there in this list. There is no Others option. Let’s say the user wants to transfer to Intesa Sanpaolo. There is no option. There are hundreds of big banks which are not there in this dropdown. Does this mean that an Indian resident cannot transfer to a business or individual who has an account in the banks which are not listed in this droplist?

I have filed form 15CA and issued a certificate. But for certain reasons as per that particular bank`s rules the assessee was not allowed to transfer the same. As the assessee was in need of money abroad he wants to transfer the same from a different bank. So how do I cancel the certificate issued earlier.

I am very surprise that still the definition of “Accountant” section 288 of Income Tax Act 1961’ recognising only Chartered Accountant. Currently the standing committee of finance suggested to wide definition of “Accountant” and that will be good signal for professional and business community.

I have uploaded the 15ca form and got an ackowledgement for the same but later realized that at one point i have made amistake and wrongly added a zero to one of the figures how do i edit it as i cannot fill a new form again

If an individual make payment to NRi against purchase of their immovable property. should he deducte tds & deposit the same with concern authority. But how can it is possible if the person who is buying propety have no Tan No.

My company has supported a transaction between two foreign parties as a liasoner. Actually, we had arranged sale to one of them from other. We are going to give expenses bill to that party as liasoning expnse.

1. Wherher the service here can be said to done in india?

2. Is service tax to be charged on such bill?

3. I have heard that” the term “Liasoning” is not covered under service tax ? is it trur

Please if any one has idea …can reply me and plz give the relevant section also…